The present invention relates to a portable information and transaction processing system and method and, more particularly, to a portable information and transaction processing system and method which utilizes digital certificate security and biometric authorization to provide personal verification prior to processing user requested financial transactions and providing personal information.
It is now widely accepted in the domestic consumer market that purchasing or selling goods or services with credit cards at point of sale (POS) terminals, as well as performing electronic transfer of funds at automated teller machine (ATM) terminals using ATM cards, is more efficient than using cash to pay for goods or services or paying debts. Utilizing cash as a means for purchasing goods or paying debts is generally viewed as burdensome for several reasons. First, in terms of accounting, the consumer must manually generate records and reconcile his or her accounts to keep track of such cash transactions. By utilizing a credit card issued by a financial institution, however, consumer transactions are recorded by such financial institution and accountings are provided to the consumer on a monthly basis, which provides improved accounting and reconciliation.
In addition, using cash is a financially insecure method for protecting consumers against fraud and theft. For example, if a consumer believes that he or she has been sold an inferior or over-priced product, which frequently occurs during quick consumer transactions where the consumer may not have adequate time to reflect on the purchase until some time after such purchase, it is much easier for the consumer to contact the financial institution to stop payment on goods purchased using a credit card than it is for the user to recover cash from the merchant from whom such goods were bought. Moreover, it is virtually impossible for a consumer to recover cash that has been stolen or lost. On the other hand, if the consumer's credit cards are stolen or lost, the consumer can contact the corresponding financial institution to cancel such cards and obtain new credit card accounts.
Accordingly, there is a strong trend today in moving towards a "cashless society," which has caused a substantial increase in the use of credit cards, ATM cards and direct debit cards (collectively, "financial cards") for performing consumer transactions. Notwithstanding the perceived benefits of using financial cards rather than cash, there exists several disadvantages in using these cards. For example, if the consumer frequently uses a significant number of financial cards, the consumer must physically possess all such cards in order to access a desired account. Having to carry such a large number of financial cards can be extremely burdensome to the consumer since a substantial amount of space is occupied by these cards in the consumer's wallet or purse. Moreover, if the wallet or purse is lost or stolen, the consumer must contact the financial institution for each financial card to cancel the account so as to prevent an unauthorized user from transacting business with such cards, which is also a burdensome task.
Another disadvantage in using financial cards is that consumers are not fully protected from the unauthorized use of lost or stolen cards. For example, a merchant can confirm the ownership of a credit card during a consumer transaction by comparing the authorized signature that is (or should be) written on the back of the credit card with the signature of the person signing the credit card receipt. Realistically, merchants generally do not compare these signatures during such a transaction, and even if they do, they may not compare such signatures with the level of scrutiny or skill needed to distinguish minor differences between the consumer's signature and the unauthorized user's forged signature. Therefore, during the period of time between the time the consumer's credit card is lost or stolen and the time the consumer realizes such loss or theft and cancels the account, an unauthorized user who has found or stolen the card may charge a substantial amount of money to the consumer's card, leaving the consumer with the burden of having to dispute such unauthorized charges with the financial institution.